Federal Court Rules CFPB Unconstitutional

The DC Circuit Court of appeals just ruled that the Consumer Financial Protection Bureau ("CFPB") is unconstitutional!

I have not yet had a chance to read the opinion. According to reports, the court found that Congress vested to much power in one individual who is not subject to sufficient oversight.

Sources indicate that the ruling will allow the CFPB to continue to operate, but the director will be supervised and may be removed by the President at will. Previously, the director was only removable by the President "for cause".

A CFPB spokesperson stated that the agency will continue its work, while it reviews options to appeal the decision. CFPB critics are calling for the agency to halt additional rule-making and allow Congress a chance to fix its charter.

Meanwhile, CFPB critics claim the decision did not go far enough. They believe the agency should be governed by a bi-partisn panel, much like the FTC and FCC.